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Busy season slows down for movers

Kevin Jaundo, at left, and Raphael Reid wrestle a portable air conditioner down a spiral staircase. They work for All My Sons Movers, a Bekins franchisee in Savannah and Hilton Head.

Carl Elmore

Kevin Jaundo, at left, and Raphael Reid hand a bookcase down to Ricky Sparks. The movers say they've handed heavier items down from balconies before. They work for All My Sons Movers, a Bekins franchisee, in Savannah and Hilton Head.

Carl Elmore

Ricky Sparks of All My Sons Movers, a Bekins franchisee, starts to load up a truck.

High fuel prices and sluggish housing markets are pulling a double-whammy on moving companies this year as they endure what is typically their busiest month of the year.

Just a year or two ago, many people were in a frenzy to buy their first homes or move up into a new one as mortgage companies pushed low "teaser" interest rates, and all the packing up and moving was good for business owners.

But as the market has pulled back with foreclosures rising and property values stagnating, Georgia companies from construction supply stores to Realtors to homebuilders also have seen their sales slow down.

Moving companies have weathered the same concerns.

"It was a horrible winter, and a lot of moving companies went out of business," said Eric De Weerd, owner of All My Sons Moving and Storage of Savannah. "With the drop down that we had in home sales and interest rates going up, essentially what it did was cause less people to move than normal.

"People seemed to be holding off. It was across the county. It wasn't just Georgia."

Erik Christensen, president of Atlanta-based Bulldog Movers, estimates that business is off about 20 percent compared with the same period last year.

The housing slowdown is a major reason.

Nationally, the amount of building starts for new homes in April was 16 percent less than in April of last year, according to the most recent update from the U.S. Census Bureau.

And in the South, the number of new home construction starts is about 24 percent off so far.

Economists say that Georgia's housing market missed the brunt of the bubble burst because selling prices never got as overinflated as in some other parts of the nation.

So home values in the state have remained fairly stable, even though selling activity has dropped off substantially, said Jeff Humphreys, director of the Selig Center for Economic Growth at the University of Georgia's Terry College of Business.

That means the slowdown should act as a drag on the state's overall economy but consumers will not be scaling back their spending as in some of states, he said, even though that is little comfort to moving-related companies.

"The people who derive their income, businesses that derive their profits from (home sales), they're feeling the pain right now," Humphreys said.

Fuel surcharges

Movers, like other drivers, also are feeling the pain at the fuel pumps.

Although average diesel prices in Georgia are cheaper now than regular-grade unleaded gasoline, the steady increases have taken a toll on movers' fuel budgets, said Christensen, president of Atlanta-based Bulldog Movers, one of the largest movers in the state.

"It's still close to $3 a gallon, so it's still a huge impact," he said. "Three years ago, we were at less than half that."

In Georgia, movers can no longer add fuel surcharges onto their bills to customers.

When overseeing the in-state moving companies became the responsibility of the Georgia Public Service Commission in 2005, state regulators dropped the surcharge.

Changing fuel prices are expected to be recouped in tariffs the businesses can charge based on the size of moving crews and how long they work.

Earlier this year, the PSC agreed to increase the maximum cap for those charges by 25 percent across the board, said Deborah Flannagan, the PSC's executive director.

It was the first tariff increase the state's industry saw in seven years, and to avoid future gaps, the companies will be allowed to raise their maximum rates by 2 percent each year.

Under the new caps, a moving company can charge up to $173 an hour if one van and three people are used on a job.

But just because the maximum amounts bumped up, that did not mean most moving companies automatically jumped their prices, said Christensen, a board member with the Georgia Movers Association.

"People can price whatever they want," he said. "It's market-driven."

And that market has become even more competitive with a slower summer predicted, which could benefit consumers shopping around.

De Weerd said focusing on customer service at his Savannah operation is one of the few ways to respond to the outside factors.

He said the workers and the drivers for his 10-truck fleet are in the middle of getting certified through a national industry trade group.

That means they undergo 12-15 hour training courses and have to pass several tests to obtain the endorsement.

But it also means potentially happier homeowners and a strong marketing tool, which is increasing important now.

"That has an additional selling point," De Weerd said.

How to Plan Your Move

Think ahead

Summer time is the busiest time of the year for movers. In addition, the beginning and end of each month are traditionally busier than mid-month, regardless of the season. If you are planning to move during one of the times, plan well in advance so your mover's schedule will fit yours.

Packing

Proper packing by a trained packer using specially designed cartons and materials is crucial to a good move. Schedule packing with the mover a day or two before the moving van is loaded. If you are packing yourself, it is never too soon to start. While packing yourself can save money, movers usually will not accept liability for damage to items packed by owners.

Planning your moving day

Your mover may ask you to select several consecutive days during which your goods can be loaded and a second series of dates during which your goods can be delivered to your new home. Remember that summer months are the busiest, and some movers offer lower prices between the months of October and April.

Moving day

Be on hand when the movers arrive Discuss the delivery arrangements fully with your mover. Have beds stripped and ready to be packed. Save your energy - let the moving crew disassemble goods. Read the Bill of Lading before you sign it. Tell your mover how to reach you at your destination. Keep in contact with the mover's agent at your destination while you are in transit.

Delivery

Generally, your belongings will be transported in a van along with those of other families in the same general direction. This helps to keep your costs down. Delivery is made on any of the several consecutive days agreed upon before the move began. Make sure the mover knows how to contact you to schedule actual delivery. If you cannot be reached at the destination, the mover may place your shipment in storage to avoid delaying other shipments. This can mean additional charges for storage and handling.

Upon delivery, check your goods for damage. Do not sign the inventory until you have inspected your furniture and the exterior of the cartons.

Claims

If any of your household goods are damaged or lost, report the facts promptly and in detail on the van driver's copy (original) of the inventory sheet before you sign it.

If you notice damage after unpacking, a claim must be filed within nine months after delivery. However, it is to your advantage to report damage as soon as possible. The mover must acknowledge receipt of your claim within 30 days and must deny or make an offer within 120 days of receipt of your claim.

When making a claim or considering a settlement offer, keep in mind the amount of liability that you declared on your shipment. For example, if the value declared on your shipment was $5,000, the mover's maximum liability for loss or damage to the articles in your shipment is $5,000.

Claims for more than this amount will be declined because they are in excess of the mover's liability that you declared on your shipment.

MARINE CORPS BASE CAMP BUTLER, Okinawa, Japan — Marine Corps Captain James E. Frederick, who ejected from a Marine F/A-18 on Dec. 7, was pronounced dead after his body was found during search and rescue operations.